Page 6 - MUMBAI - 12 APRIL 2024

6 EXIM newsletter Mumbai, Friday, April 12, 2024
INDIA
Baltimore bridge collapse has not led to rise in rates,

but further US East Coast disruptions seen likely

Partial channel reopening by end of April, full by the end of May

Exim News Service but that doesn’t mean shippers with port access to normal capacity.
OSLO, April 11 cargo heading to Baltimore are not af- Further disruptions possible
THE collapse of the Francis Scott fected – on the contrary they are seeing While shippers will welcome a
Key Bridge in Baltimore has caused containers arriving at ports they were timeline for the reopening of maritime
supply chain disruption on the US not expecting. lanes into Baltimore, Mr Sand believes
East Coast but, so far, it has not seen “The majority of containers will now importers into the US East Coast could
an increase in ocean freight container be handled at New York / New Jersey be set for further disruptions in 2024
shipping rates. because many of the ships originally due to labour negotiations.
Data released by Xeneta, the ocean bound for Baltimore would have been The International Longshoremen’s
freight rate benchmarking and intel- stopping there anyway, which is per- Association’s six-year contract with the
ligence platform, reveals average spot haps why we haven’t seen an upwards United States Maritime Alliance, which
rates from the Far East into the US impact on rates. represents port terminal operators
North East Coast (including Balti- “Ocean freight container shipping and ocean carriers on the East Coast,
more) have fallen slightly (-1%) since rates may not have increased following expires on September 31 – and no new
the bridge collapse on March 26, 2024 the bridge collapse, but this incident agreement has yet been reached.
to stand at USD 5,421 per FEU (40ft is yet another problem for shippers Mr Sand said: “The threat of labour
shipping container), it said in a release. to handle on top of all the other dis- strikes on the East Coast has the po-
When including other US East Coast ruptions impacting supply chains at tential to cause far more disruption to
ports such as New York / New Jersey, the moment, including the ongoing ocean freight shipping than the collapse
rates from the Far East have decreased diversions in the Red Sea region and of the Francis Scott Key Bridge.
by 3% in the same period. drought in the Panama Canal.” “The clock is ticking and if no agree-
Average spot rates from North Eu- On Friday, April 5, the Port of ment is reached, then the implications
rope to the US North East Coast have Baltimore issued an update stating will be significant and widespread
fallen by a larger 8% in the same period it expects to open a 280-feet wide disruption at US East Coast ports.
to stand at USD 2,357 per FEU. When and 35-feet deep federal navigation This would almost certainly see rates
including other US East Coast ports, channel by the end of April, fol- increase for ocean freight container
rates have decreased by 4%. lowed by a reopening of the perma- services and could see some shippers
Mr Peter Sand, Xeneta Chief Ana- nent 700-feet wide and 50-feet deep choosing to head back to the US West
lyst, said: “Spot rates have not reacted channel by the end of May, restoring Coast or Mexico for imports.”
Maersk employees innovate a system to deliver fresh water
from its vessels to ports also recognise that sustain- has provided valuable insights
ability is not only about de- into the project’s environ-
Exim News Service the vessels. However, the carbonising supply chains but mental impact, comparing it
SALALAH, April 11 excess water produced has also protecting our environ- favourably against traditional
FRESH water scarcity is been overlooked. Through ment and its finite resources. tanker truck water delivery
an increasing problem faced this innovative project, The first tank container of methods.
by regions all over the world. this untapped resource fresh water delivered by The fresh water generated
Four billion people — almost has been capitalised on by Maersk from its vessel is an and delivered through this
two-thirds of the world’s popu- optimising the process and important milestone that has innovative project can be used
lation — experience severe storing the excess water the potential to pave the path in various ways:
water scarcity for at least in tank containers before for a larger scheme of things”. 1. Consumption at port
one month each year, and delivering it to ports. He added, “This project opens facilities for basic sanitation,
half of the world’s population Each vessel can fill two doors for many more ships cleaning, and maintenance
could be living tank contain- moving around the world, of offices, warehouses, and
in areas facing ers on an aver- which can replicate this sys- restrooms.
water scarcity by age sea voyage tem and create an incredibly 2. Ship repair at yards
as early as 2025. With this between two ports. With large supply of fresh water for tasks like cleaning vessels,
background, a team of three the process optimised and that is being delivered all tools, and work areas.
employees of A.P. Moller – tank containers stored at around the world to address 3. Container washing
Maersk (Maersk), who are the right location onboard, the ever-increasing challenge before storage or reusing.
former seafarers, decided two tank containers with of water scarcity.” 4. Firefighting at port
to undertake an innovative a combined capacity of A pivotal aspect of the facilities for emergencies.
project that could store and 50,000 litres can be filled project’s success is its rigor- 5. Power generation at
deliver fresh water from ves- with fresh water. Amongst ous adherence to quality and power plants located in ports
sels to ports. the first pilot runs were environmental standards. The for cooling systems or other
Cargo ships under- the deliveries at the Port water quality, tested by the processes.
taking global trade are of Colombo and Port of Sa- Ceylon Institute of Scientific Additionally, this fresh
equipped with fresh water lalah of two tank contain- & Industrial Research, an of- water can also be distributed
generator systems that ers, each filled with 25,000 ficial Sri Lankan Government for humanitarian activities by
produce clean drinking litres of fresh water. laboratory, met all World transporting it to the hinter-
water by distilling sea Mr Keld M. Christensen, Health Organisation (WHO) land for use by societies facing
water using heat energy Chief Executive Officer, Port standards, underscoring the water scarcity.
harnessed from their en- of Salalah, said, “At Port of project’s commitment to safety Maersk plans to explore
gines. Traditionally, this Salalah, sustainability is one and sustainability. Further- expanding its efforts to more
system has been used to of our top priorities and are more, a Life Cycle Assessment ports and collaborate with
generate water for con- committed to decarbonising (LCA) study conducted by the beneficiary stakeholders
sumption only onboard our operations by 2040. We Danish Technical University worldwide, said a release.